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Hello Folks… today we take a look at companies that finance their day-to-day operations, and/or perhaps their expansion plans and/or CEO compensation, with companies that provide money in exchange for shares in the company.

Many companies finance their operations via banks and other conventional lenders.  However some, and according to the post here, need cash so desperately, they turn to financing companies like Asher Enterprises.  Here is a graphical excerpt from the referenced article, but be sure to take a few minutes and read the full article.

Asher_2We know Mr. Steven M. Samblis and/or his company Imagination TV, Inc. (OTC Pink: IMTV) does business with Asher Enterprises, here is the SEC filing.  The questions here are… how much business has Mr. Samblis done with Asher, and of all the loans seen here, which ones would be considered “toxic” as detailed in the above referenced article.  Many assume all of these listed notes would be considered toxic.  Do the math on the outstanding principal amount, divided by today’s share price, and you will have some idea of the shares under contract.  WOW !

So… as we indicated in the post here… investing in IMTV could be perilous at best, given the debt Mr. Samblis has agreed to, and it’s relationship to the solvency of the company.  Some say there will be yet another reverse split.  They point to the convertible debt and indicate another reverse split is inevitable.  Many investors that have gone through any of the previous 4 reverse splits cite how their investment was wiped out.  Many it is assumed were invested in the stock to “flip” it for some quick profit, only to find out it was extremely difficult to sell their shares when competing with companies like Asher that have acquired the shares at a 50% or greater discount over what the retail investor could buy them at.  AND… what happens to toxic lender’s shares as a result of a reverse split… check out this passage from the above referenced SEC filing:

Asher_3WOW… how can ANY retail investor compete with that?

So… investors that may be unfamiliar with the history of Mr. Samblis, and his ever-changing names of his companies, his reverse split history, his [in]abilities to generate profits (or even revenue for that matter), would be well served by doing their own research on Mr. Samblis’s historical events.  The shares are very easy to buy, and some may be tempted by the fluctuation of the PPS, but they need to understand the likely difficult time an investor will have when they attempt to sell those shares in competition with the likes of Asher who acquired their shares at a very steep discount.

Of course there will be those that think they are seasoned investors, and THEY can beat the odds so to speak.  Well, all we can say is… good luck.  Many seasoned investors have gone before you, and have posted their experiences with Mr. Samblis in any number of investment forums.  Take the time to read some… it will likely be well worth your time.